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Major Cineplex, Thailand's largest operator of multiplex cinemas, this year will make its first foreign investment with the planned launch of bowling alleys and karaoke lounges in India.
The investment, through a joint venture with PVR, one of India's largest multiplex-cinema operators, will introduce the group's successful entertainment formats, including bowling alleys, karaoke centres, ice-skating rinks and fitness centres, into India.
PVR's multiplex cinemas account for 95 screens in 14 Indian cities.
Major Cineplex will own 49 per cent of the joint venture and PVR 51 per cent. It will have registered capital of 90 million rupees (Bt74.7 million).
"We expect to develop 150-200 bowling lanes in major cities throughout India. The investment required in the next three years to expand bowling alleys alone will be about Bt400 million," said Major Cineplex Group chairman Vicha Poolvaraluck.
Major Cineplex has operated bowling alleys in Thailand for 10 years. Its first location was Major Ekamai in Bangkok. It now operates about 500 bowling lanes: 400 in Bangkok and the rest upcountry.
PVR joint managing director Sanjeev Kumar Bijli said the joint venture's first development would be an 18-lane Blu-O bowling alley to be opened within six months in Delhi's Ambi Mall. It will take about three years to break even.
"We plan to open between 200 and 250 bowling lanes in major cities in India in the next three years. Each alley will have about 30 lanes," he said.
There are currently only two bowling alleys in Delhi: one has six lanes and the other only four.
"We have seen great potential for bowling alleys and other enter-tainment formats in India, particularly in key cities such as Delhi, Bombay and Bangalore, due to their large populations and similar entertainment cultures to that in Thailand," he said.
Delhi has a population between 13 million and 14 million, 15 million live in Bombay, and Bangalore has between 7 million and 8 million people. Indian consumers have a similar entertainment lifestyle as Thais, preferring out-of-home entertainment in big family groups at venues like cinemas.
Vicha said cinemas were the most popular out-of-home entertainment for Indian people. PVR, with its 95 cinema screens, enjoys average viewer occupancy of 60 per cent. This is much higher than cinemas in Bangkok, which have average viewer occupancy of about 30 per cent.
He said movie-goers in India were looking for other kinds of entertainment beyond cinemas.
"The joint venture in India is our first foreign expansion. We'll offer our business experience and expertise, as well as our branding and successful management models. In addition to India, we're also looking at two other potential markets in Asia for further expansion," Vicha said.
PVR chairman and managing director Ajay Bijli said the joint venture was a part of his company's constant efforts to evolve from a film-entertainment company into a retail-entertainment player.
Source: The Nation by Kwanchai Rungfapaisarn
Wednesday February 13, 2008